Group files suit against Google incentives

RALEIGH (AP) — A small-government advocacy group filed a lawsuit today challenging the millions of dollars in state incentives used to lure Google to Caldwell County.

The suit was filed in Wake County Superior Court by the North Carolina Institute for Constitutional Law. It alleges the tax credits and grants offered to Google as inducement to build a computer center violate the state's Constitution.

State lawmakers passed new exemptions last year to relieve Google of some retail sales and use taxes. State business recruiters also earmarked nearly $5 million to the company if it meets job-creation goals.

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